House D's Introduce $24B School Aid Budget

(Source: MIRS.news, Published 06/10/2025) House Democrats unveiled a $24 billion School Aid budget from their position in the minority Tuesday while House Republicans had their budget retreat elsewhere in Lansing. The Senate nearly a month ago passed a $21.8 billion plan.

House Appropriations Committee Minority Vice Chair Alabas Farhat (D-Dearborn) is suggesting an $11,400 per-pupil foundation allowance, $1.2 billion for school infrastructure grants, $500 million in classroom size reduction grants and more.

House Speaker Matt Hall (R-Richland Township) announced last month that when his School Aid budget does come out, it will include a $12,000 per-pupil allowance and with much fewer special carve outs for special groups, known among those in the budget-making process as categoricals.

When asked if the Democrats’ budget plan accounts for the House Republicans’ road plan that exempts motor fuel from the sales tax but holds schools harmless by promising sales tax revenue for funding, Farhat said there is a bill in that package that keeps the School Aid Fund whole using sales tax revenue, so he fully anticipates that every dollar that goes to the schools now that is collected at the pump will still go to schools.

This $24 billion budget does not account for higher education funding. Instead, higher education would be funded in the General Fund and also receive a 4.5 percent increase.

Farhat said that if Rep. Kathy Schmaltz (R-Jackson)’s HB 4170 that returns the state income tax rate to 4.05 percent does not pass, then there would be enough funding for this plan.

The $1.2 billion pot for infrastructure grants may raise eyebrows after last month when more than half of school bonding millages failed, but Farhat said that doesn’t mean the school districts don’t have infrastructure needs.

“You’re seeing families being made to make very tough decisions about whether or not they can pay rent and buy groceries. If you ask them, ‘Do you think your school needs improvement?’ they’ll probably say yes, but the question is, can you afford it?” Farhat said.

Farhat said the grant process will upgrade facilities irrespective of the local community’s ability to levy a tax to pay for it.

Rep. Julie Brixie (D-Okemos) said children in rural areas with low property values suffer since children in areas with higher property values are able to afford new buildings and other infrastructure.

Ongoing funding included in this plan are:

$2.6 billion for special education

$1 billion for at-risk students

$625 million for the Great Start Readiness program

$200 million for the universal school meals program

$125 million for school district transportation costs

$50 million for bilingual education

$40 million for career and technical education

$25 million for the Early On program

$25 million for mental health and school safety funding

$12 million for isolated or rural school districts

One-time funding included in the plan are:

$1.2 billion for school infrastructure grants

$500 million for classroom size reduction grants (which could also be used on infrastructure)

$300 million for mental health and school safety funding

$300 million for literacy grants

$100 million for out-of-school programs

Robert McCann, executive director of the K-12 Alliance of Michigan said while he appreciates the "real investments in our schools put forth by the House Democrats, he's hopeful the House Republicans on Wednesday share the same commitment to pass a budget soon by moving on their own plan.